Personal Contract Purchase

Personal Contract Purchase (PCP) is a flexible and popular way to finance a vehicle - especially if you like changing cars every few years or want lower monthly payments.

With PCP, you pay a deposit followed by fixed monthly repayments over an agreed term, typically between 24 and 48 months. However, unlike Hire Purchase (HP), you're only financing part of the vehicle's value - not the whole amount. At the end of the agreement, you'll have three clear options:

• Return the vehicle with nothing more to pay (subject to mileage and condition)
• Pay the optional final payment (also known as a balloon payment) to own the vehicle
• Trade it in and use any equity towards a new finance agreement

The final (balloon) payment is based on the vehicle's predicted future value, agreed at the start of the term. This helps keep monthly payments lower than with traditional HP finance.

How PCP Works

Choose your vehicle

New or used - your choice.

Set your deposit & mileage

You can often go low or even £0 down.

Pay monthly for 2-4 years

You're only paying off part of the car's value - so monthly costs are lower.

End of term = options

Decide what you want to do next.